Masdar plans to acquire Saeta Yield for $1.4 billion to expand its renewable energy portfolio in Spain and Portugal.

Overview of the Deal

On September 24, 2024, Abu Dhabi Future Energy Company (Masdar) announced its intention to acquire Saeta Yield, S.A. from Brookfield Renewable Partners L.P. for approximately $1.4 billion (€1.2 billion). This acquisition will significantly enhance Masdar's renewable energy portfolio in the Iberian Peninsula, incorporating assets totaling 745 megawatts (MW) and a development pipeline of 1.6 gigawatts (GW) across Spain and Portugal. The asset portfolio comprises 538 MW of wind resources in Spain, 144 MW in Portugal, and 63 MW of solar photovoltaic (PV) assets in Spain, while excluding a regulated portfolio of 350 MW of concentrated solar power that Brookfield will retain.

Previously, in 2018, Brookfield acquired Saeta and effectively implemented a strategy focused on divesting non-core assets and enhancing its capital structure, positioning the company for growth through initiatives such as hybridization, repowering, and greenfield development. This acquisition aligns with Masdar’s strategic objective of solidifying its presence in the European renewable energy market, building on a prior agreement to acquire a 49.99% stake in Endesa’s 2.5 GW renewable energy portfolio in July 2024.

Industry Overview in Spain and Portugal

The Iberian Peninsula has emerged as a significant player in the renewable energy sector, driven by favorable government policies and a commitment to reducing carbon emissions. Both Spain and Portugal have implemented ambitious renewable energy targets, with Spain aiming to g